Mark Richards is the purchasing agent for the Hart Manufacturing Company. Kent S

Question

Mark Richards is the purchasing agent for the Hart Manufacturing Company. Kent Sampson is head of the Production Planning and Control Department. Every six months Sampson gives Richards a general purchasing program. Richards gets specifications from the Engineering Department. He then selects suppliers and negotiates prices. When he took this job, Richards was informed very clearly that he bore responsibility for meeting the general purchasing program requirements once he accepted it from Sampson.

During Week 24, Richards is advised that Part No. 1234 (a critical part) would be needed for assembly on Tuesday morning of Week 32. He found that the regular supplier could not deliver, so he called everywhere and finally found a supplier in the Midwest who accepted the commitment.

He followed up by e-mail. Yes, the supplier assured him, the part would be ready. The matter was so important that on Thursday of Week 31, Richards checked by phone to be sure the part had left in time. He was assured that it had left as scheduled. He was reassured so did not check further. On Tuesday of Week 32, the part had not arrived. An inquiry revealed that the shipment had been misdirected by the railroad and was still in Chicago.


What department should bear the cost of lost time in the plant due to the delayed shipment? Why?

Explanation / Answer

What department should bear the cost of lost time in the plant due to the delayed shipment? Why?

The plant manager should not be asked to underwrite a loss due to failre of delivery over which he had no supervision.

The time lost in the plant should be charged to the purchasing department. Although the purchasing agent may feel he has done everything the possibly could ,he must releasize that in the whole organization, he is the one who is in the best position to evaluate the situation.

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